Efficiency of Chinese Township and Village Enterprises and Property Rights in the 1990s: Case Study of Wuxi1

Go Yano and Maho Shiraishi ()
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Maho Shiraishi: Research fellow of the Japan Society for the Promotion of Science, Grad. School of Economics Kyoto University, Yoshida-honmuchi, Sakyo-ku, Kyoto 606-8501, Japan.

Comparative Economic Studies, 2004, vol. 46, issue 2, 340 pages

Abstract: We estimate the technical efficiency of collective-owned township and village enterprises (TVEs) relative to other types of enterprise, taking into account the net work rate for equipment and machines. Our aim is to investigate whether the vaguely specified property rights of these enterprises caused them to decline in technical efficiency just before they underwent a massive privatisation programme in Wuxi City and Jiangsu province, starting in 1998. Our results cast doubt on the view that vaguely specified property rights became inconsistent with productive or technical efficiency in Wuxi City. It follows that privatisation of collective-owned TVEs may be insufficient to improve their productivity performance from now on. Comparative Economic Studies (2004) 46, 311–340. doi:10.1057/palgrave.ces.8100037

Date: 2004
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